HomeLoans Blog

I have not found much in the way of explanation about the bond price drop yesterday.

You know when bond prices drop either for Treauries or for mortgage securities, the interest rate goes up.

So bond price movement matters to home buyers and to people thinking about refinancing.

The only explanation is that investors felt a little more secure in stocks after the Federal Reserve statements - maybe the feeling is that the Fed actions may help the economy.

I actually think that it is more market resistance to these high bond prices, and the resulting low yields or interest rates.

The rise in bond prices has been very steady for several months. We are well above moving averages.

So investors may be just uneasy about pushing those prices higher.

If so, then we may be at the lower end of rates, at least for the next few days.